Bank loan
T.Srinivas
(Querist) 24 April 2016
This query is : Resolved
Respected experts
Father acquired ancestal property through an registered partition deed, till today property revenue records stands in his name and he enjoying property with his children's, schedule property consists 3 individual house's, later father availed bank loan mortgaging the property for the well fare of the family and for the same his children's stood as guarantors and executed necessary documents, such as children's paying rents to his father in respect of the property. Now father failed to pay the loan amount and bank issued final notice. Children's are not at all bothered to repay the loan amount.
My clarification from your side is
1. Whether children's are equally responsible for the loan amount?
2.Father is aged 70 years and he have no income, loan is sanctioned on the basis of the rent returns shown, which is paying his children's.. actually with out rental agreement by mutual they paying rents to his father. now how to collect the rent from children?
3. Now for the loan purpose father can rent out the property to third person, now how to evict the children from property?
4. What kind of case can initiate against the children's?
5.yours any suggestions regarding the same.
P. Venu
(Expert) 24 April 2016
From the facts stated, the relationship of Father and children are not relevant to the issues.
The borrower and sureties are equally responsible for the loan. And the Bank has got the right to sue all of them jointly severally. The sureties, in turn, can place demand on the borrower for the recoveries effected from them. However, the Bank is likely to resort to proceedings under SAFAESI Act.
As regards to default in rent, the father, as the land lord, can proceed against children, the tenants, for the default in rent.
The property is no longer ancestral and belongs to the father.
T.Srinivas
(Querist) 24 April 2016
Respected sir in the above said circumstances what kind of legal action can initiate against children's?
Rajendra K Goyal
(Expert) 24 April 2016
1. Yes being guarantor to the loan children are equally responsible.
2. Eviction suit need to be filed if children as tenant are not paying rent.
3. Yes, if the property is evicted by the children.
4. Discuss with local lawyer.
5. Nil.
